How to Navigate the Australian GST Rules in 2025: What’s Changing?
- Marketing Manager
- Nov 7
- 5 min read
As 2025 approaches, small business owners in Australia are facing important changes to the Goods and Services Tax (GST) regulations. These changes are designed to make GST more transparent and easier to manage, but for small businesses, they also mean adjustments to how you price and invoice your products or services.
In this blog, we’ll provide an in-depth look at How to Navigate the Australian GST Rules in 2025, including what’s changing, how it impacts your business, and the steps you can take to stay compliant.
By staying ahead of these changes, you’ll be able to continue running your business smoothly without any surprises.
What’s Changing in Australian GST in 2025?
The GST rules in Australia are being updated to reflect the growth of the digital economy and increase the transparency of business transactions. These changes will affect both large and small businesses across the country, and it’s crucial that you’re prepared to navigate them.
Here are some of the key updates that will impact your small business in 2025:
GST Registration Threshold Remains at $75,000 For most small businesses, if your annual turnover exceeds $75,000, you are required to register for GST. While this threshold has not changed, the ATO is making it easier for businesses to track their earnings across various digital platforms, such as e-commerce websites, freelancing platforms, and online marketplaces.
What This Means for You: If your business generates income above the threshold, you must register for GST and start charging it on your sales. If you’re unsure, track your income closely in 2025 to ensure you don’t exceed the limit.
GST on Digital Services and Online Platforms Businesses that provide digital services or sell through online platforms like Uber, Upwork, or Freelancer will need to account for GST on their earnings. The new rules require these platforms to report earnings directly to the ATO.
What This Means for You: If you’re earning income through these platforms, make sure you’re accounting for the GST appropriately in your invoices. You may need to charge GST to your clients or customers, depending on whether you are registered.
GST on E-Commerce Sales E-commerce businesses selling products or services to Australian customers will be required to collect GST on sales, even if the product or service is sold overseas. This is part of the government's push to ensure that all goods and services are treated equally under the GST system.
What This Means for You: If you’re running an e-commerce store, you need to ensure that GST is charged on your sales if applicable. Make sure your online store’s payment system is set up to handle this change.
Quarterly to Monthly BAS (Business Activity Statement) for Some In 2025, small businesses registered for GST will be required to submit a monthly BAS (Business Activity Statement) rather than the traditional quarterly submission. This change aims to make GST reporting more frequent and transparent.
What This Means for You: Stay organized! Make sure you’re maintaining accurate records of your sales, GST collected, and expenses so you can easily file your BAS monthly.
How Can You Adjust Your Pricing and Invoicing Practices in 2025?
With these changes in mind, it’s time to start thinking about how you can adjust your pricing and invoicing to stay compliant with the new GST regulations.
Here’s how you can prepare:
1. Adjust Your Pricing to Account for GST
For businesses that are registered for GST, you’ll need to adjust your prices to include GST (currently at 10%) if you haven’t already.
How to Adjust:
If your current price is $100, add 10% to this price, making it $110 (GST included).
If you have been charging clients without including GST, it’s time to update your pricing.
For example:
Before: Service fee = $100 (no GST).
After: Service fee = $100 + $10 (GST) = $110.
Keep in mind that this can affect how your customers view your pricing, so it’s important to communicate the change and explain that the GST is now part of the total price.
Communicate Changes to Clients: Be transparent with your clients about why prices have increased.
Let them know that the change is due to updated GST rules, and it’s required by law. This helps manage expectations and maintain strong relationships.
2. Update Your Invoices to Include GST
When you’re registered for GST, every invoice you issue needs to include a clear breakdown of the GST. This is crucial for both compliance and for your clients, as they will need to know how much GST they are being charged.
Here’s how to update your invoices:
Include your GST registration number on each invoice.
Clearly breakdown the GST amount (e.g., 10% of the total).
Include the total amount payable, which should now include the GST.
For example:
Service: $100
GST: $10
Total: $110
Make sure your invoicing system or software is updated to automatically calculate GST and generate compliant invoices.
3. Track Your GST Collected and Paid
With the shift to monthly BAS filing, keeping track of the GST you collect from customers and the GST you pay on business expenses is more important than ever.
Here’s how you can stay organized:
Use accounting software like Xero, QuickBooks, or MYOB to keep track of your GST transactions. These tools allow you to generate reports for GST paid and GST collected.
Maintain a separate record for GST transactions, so that you can easily access it during the BAS preparation period.
4. Stay on Top of Your BAS (Business Activity Statement) Deadlines
One of the most significant changes in 2025 is the switch from quarterly to monthly BAS submissions for some businesses.
Key Tips to Stay on Track:
Set reminders for BAS due dates. Missing deadlines can result in penalties and interest charges.
Review your sales and expenses each month, so you can keep an accurate record and avoid scrambling at the last minute.
Make use of online tools that can auto-generate your BAS and help you submit on time.
5. Leverage GST Credits for Your Business
Did you know that you can claim back GST on certain business purchases? For instance, if you’re buying supplies or equipment for your business, the GST you paid is refundable.
How to Use GST Credits:
Ensure that you keep receipts for all business-related purchases, including goods, services, and even subscriptions.
If you’ve paid GST on these purchases, you can claim it back as a GST credit when submitting your BAS.
This can lower your overall tax liability, which is a win for your business!
Conclusion: Stay Ahead of GST Changes in 2025
The Australian GST changes in 2025 are here, and it’s crucial for small businesses to stay ahead of the curve. From ensuring that your pricing and invoicing practices are GST-compliant to staying organized with your BAS and leveraging GST credits, there are plenty of steps you can take to minimize the impact of these changes on your business.
By making the right adjustments now, you can ensure that your business remains compliant with the new GST rules and can continue running smoothly throughout the year.
Need Assistance? If you're feeling overwhelmed or unsure about these changes, don’t hesitate to reach out to us at ProfitCloud. Our experts are here to help you navigate the new GST regulations and get your business on track for a successful 2025.
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